FX.co ★ UK Construction Output Drops Less than Expected

UK construction output declined by 1.5% year-on-year in September 2026, easing from a slightly revised 1.9% drop in August and performing better than market expectations of a 2.1% fall. This was the 11th consecutive month of contraction, though the slowest pace since June.

New work continued to shrink for the 12th straight month (-6.2% vs -6.1% in August), while growth in repair and maintenance accelerated (5.0% vs 3.9%).

On a monthly basis, total construction output rose 0.8%, recovering from a 0.5% decline in August and posting the first increase in five months. The figure also beat forecasts for a 0.1% decrease. Repair and maintenance remained in expansion (0.6%, unchanged from August), and new work returned to growth (0.9% vs -1.4% previously).

Over the three months to September, construction output fell 0.7%, extending its decline for a third consecutive three-month period. New work was down 1.6%, while repair and maintenance increased by 0.5%.